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Q1 FY17 represents the period from 1st April 2016 to 30th June 2016
Q1 FY16 represents the period from 1st April 2015 to 30th June 2015
Financials (other than JLR) contained in the presentation are as per Ind AS.
JLR Financials contained in the presentation are as per IFRS as approved in the EU
The Company has adopted Ind AS for its Standalone and Consolidated financials with effect from April 1, 2016, with
comparatives being restated. Accordingly, the impact of transition has been provided in the Opening Reserves as at April
1, 2015 and all the periods presented have been restated accordingly.
Table of Contents
Financial Highlights
Net Revenue 66,005 60,451 Net Revenue 10,423 9,354 Net Revenue 5,461 5,002
Higher volumes more than offset Continued growth in the M&HCV Solid sales volume and
by the adverse FX impact ,higher and LCV segment. Car segment revenue but lower EBITDA
depreciation and amortisation witnessed a very strong growth on due to Unfavorable FX impact
the back of recently launched Tiago and lower local market
incentive compared to Q1
Q1 FY 16 included additional other FY16
income (sale of investment) of Rs
324 crores EBITDA margin excl FX
revaluation (as explained in
Improved EBITDA margin in the next slide) is around 14%,
Standalone business : 5.7% (vs
4.7% in Q1 FY 16)
For the presentation purpose, revenue has been taken as net of excise duty. EBITDA % is calculated on Revenue net of excise duty
Consolidated PAT is after minority interest and share of profit/(loss) in respect of associate companies.
Joint Operations included in Standalone financials are Tata Cummins Private Ltd and Fiat India Automobile Private Limited
Tata Motors Group-Jaguar Land Rover
FOREIGN EXCHANGE IMPACT-UNFAVOURABLE REVALUATION
Quarter ended 30 June
Memo:
1 Realised hedge gains/(losses) are driven by the difference between executed hedging exchange rates compared to accounting exchange rates
2 Exchange revaluation gains/(losses) reflect the movement in each end of period exchange rate
Tata Motors Group- Summary of Ind-AS changes
(Figures are for the quarter April to June 2015)
Particulars At Standalone level (Rs At Consolidated level (Rs
crores) crores)
Profit Reported as per IGAAP 257.57 2,768.91
Changes :-
Exchange movement impact on foreign (36.11) 2,145.35
currency instruments (earlier amortised
over the life of the instrument)
Effect of reassessment of deemed cost 48.18 48.18
of certain plant and equipment and
intangibles
Profit from Joint Operations 86.74
Jaguar land Rover EBITDA for Q1 FY17 was 672 mn , EBITDA margin at
12.3%; mainly impacted by :
Exports up 2 % Y-o-Y.
6.3%
32,917 34,994 new standards of fuel efficiency
CUSTOMER FIRST
TO BE THE WORLDS PREMIUM SUV BRAND OF CHOICE
ENVIRONMENTAL
INNOVATION
Tata Motors Group-Jaguar Land Rover
Wholesales and Retail volumes (excluding CJLR) for Q1 FY 17 stood at 120,776 units and
Q1 FY17 (Wholesales excl
118,704 units , respectively .CJLR wholesales and retail volumes stood at 13,558 and 14,039 units
CJLR)
Overseas
North
(incl Asia
Retail Sales up in all the Regions reflecting strong sales of F-PACE, XE and DISCOVERY SPORT- America
Pac)
24.6 %
16.7%
North America up 17%; UK up 18% , China (incl JV) up 19%, Europe up 16%, Overseas up 6% China Region
10.5%
UK
Total Capex and Product development spend for the quarter was 692 mn. Post this spend free Europe 18.8%
cash flow was (633)mn, driven by 646m of seasonal and launch-related increases in inventory. 29.4%
(Free Cash flow in Q1 FY16 was (834)mn, however, full year free cash flow in FY 16 was 791mn)
North
Overseas America
Further 50mn of recoveries related to the Tianjin Port explosion, recognized as exceptional item. (incl Asia 20.0%
Pac)
17.8%
PBT of 399 mn, down from 638 mn in Q1 FY 16 broadly reflecting China Region
14.1% UK
Lower EBITDA due to the reasons as explained earlier 19.1%
Brand new Technical Centre, near Plant opened in June 2016 The Halewood plant, in Liverpool,
earned two Manufacturer of the Year
Coventry, representing a 20m
Producing Range Rover Evoque awards during June
investment
and Discovery Sport
13 awards since 2011
Comprises of:
Sales of locally produced vehicles
beginning later this year 5 years of production for the Range
Manufacturing Facility
Rover Evoque with over 500k units
Paint Facility
Technical Suite produced to date
VIP Commissioning/Viewing Suites
June 23-BREXIT REFERENDUM-IMPLICATIONS FOR JLR
The implications for JLR of BREXIT include :-
Any incremental tariffs that might result following exit from the EU
Any impact on economic growth and consumer confidence in the UK and the EU, recognizing over 50% of sales are to other
markets and JLRs strong and growing model line up
Currency Implications
JLR sells about 80% of vehicles outside the UK (24% Europe, 19% China, 19% US, 18% other)
JLR sources about 50% of components from the EU with the UK accounting for the majority of other material and operating
costs
JLR would benefit from a continued weaker Pound exchange rates as a result of Brexit (offset partially in the case of the
Euro).Benefit would be realized over a period of time as past hedges unwinds.
Tariff implications
UK vehicle exports into the EU (c. 24%) could become subject to tariffs depending on trade agreements to be
negotiated with the EU. Similarly, vehicles manufactured in the EU and imported into the UK could also be affected.
Components sourced from the EU could also become subject to tariffs, however, these would be recoverable on
vehicles subsequently exported out of the UK (presently c. 80%).
Tata Motors Group-Way Forward
Tata Motors Group Standalone Business - Way Forward
Economy, driven by government led expenditures and stimulus, is expected to support the Auto Sales growth in FY 17
Company will continue to explore capital optimization through better operating efficiencies in working capital etc and
monetization of non-core assets and some of its investments
Commercial Vehicles
Despite some market headwinds since June 2016, we continue to expect growth momentum for the full year in M&HCV, though
somewhat uneven, mainly triggered by post good monsoon demand, continued replacement and fleet expansion and pre-buying before
countrywide adoption of BS IV from 1st April 2017. Similarly, we expect positive growth in the buses & LCV segment during the year.
Wide and compelling product range with several new launches in FY17 provides strong foundation for growth :-
M&HCV- Expansion of Prima LX and new Signa Range across tonnages and applications
LCV & ILCV- Expansion of the new Ultra Range across tonnages and applications
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Tata Motors Group India Business - Way Forward
Passenger vehicles
Company will launch new products consecutively into the market
as per a robust product plan.
Vision Values
As a High Performance Organization, Integrity
we are, by FY2019 Teamwork
Among the Top 3 in Global CV and Accountability
Domestic PV Customer Focus
Achieving Sustainable Financial Excellence
Performance Speed
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Delivering Exciting Innovations
Tata Motors Group Jaguar Land Rover- Way Forward
INVESTMENT TO DRIVE PROFITABLE GROWTH
JLRs strategy continues to be to invest in new products, technology and manufacturing capacity to grow profitably ;
Jaguar Land Rover plans to continue to build on recent successful product launches with the sales ramp up of the
Jaguar F-PACE , XF long wheel base in China, the Evoque Convertible and future new model launches yet to be
announced.
We will continue to closely monitor and assess market conditions in the UK and EU post Brexit as well as China as the
target GDP growth rate comes down
The new products are expected to drive solid profitable volume growth for JLR going forward and operating cash-flow
to help fund ongoing investment.
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Tata Motors - Contact Information :
Press Presentation is available on our website
http://www.tatamotors.com/investors/investors.php
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